However,while there can be big rewards for investors investing in tech stocks,there are also big risks warns Matt Wacher,the chief investment officer at Morningstar Asia Pacific.
“With AI,we are in the ‘gold rush’ stage,with investors jumping on board ... it’s very hard to discern who is going to win,particularly when some companies have such lofty valuations;it’s fraught with danger,” he says.
Nevertheless,AI is looming larger in the minds of investors with the publicity surrounding advances in chatbots – particularly the launch of ChatGPT last year – and other breakthroughs,such as a paralysed man who can walknaturally again with brain and spine implants that use machine-learning.
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A report by Grand View Research estimates the size of the global AI market to be $US136.55 billion ($207 billion) in 2022 and is forecasting that to expand at an average compound annual growth rate of 37.3 per cent from 2023 to 2030.
“The continuous research and innovation directed by tech giants are driving the adoption of advanced technologies in industry verticals,such as automotive,healthcare,retail,finance,and manufacturing,” the report says.
For some,investments in companies in the AI sector may look like a one-way bet,but tech has seen some spectacular falls from grace,one of the biggest of which was the “tech wreck” of early 2000.